AM Castle Files Chapter 11

OAK BROOK, IL, June 19, 2017 – A. M. Castle & Co. (OTCQB: CASL) (the “Company” or “Castle”), a global distributor of specialty metal and supply chain solutions, today announced that on June 18, 2017, it and certain of its subsidiaries commenced voluntary chapter 11 proceedings with the United States Bankruptcy Court for the District of Delaware and immediately filed a Prepackaged Joint Chapter 11 Plan of Reorganization (the “Plan”) in such proceedings. The bankruptcy court will consider the Plan, which, subject to the court’s confirmation of the Plan, is expected to enable the Company to complete its financial restructuring later this summer, likely within approximately 45 to 60 days.

As previously announced, before commencing its proceedings the Company solicited acceptances of the Plan from its secured creditors entitled to vote on the Plan and received results overwhelmingly in favor of the Plan, with 98.32 percent of the voting secured creditors by dollar value voting in favor of the Plan. Additionally, a majority of the number of voting holders in each class approved the Plan, with an aggregate of 88.68 percent of voting holders in number approving the Plan.

President and CEO Steve Scheinkman said, “This filing testifies to the support of our secured creditors and is the next critical step in returning A. M. Castle to industry leadership. Our creditors’ overwhelming approval of the Plan demonstrates their belief this is the right path forward for Castle. We continue to proceed according to the financial restructuring plan we outlined initially on April 7, and we are optimistic that the court will approve our Plan, enabling Castle to emerge within approximately 45 to 60 days financially stronger and better positioned to deliver on our promise of growing our partnerships with our vendors and improving our service to our customers.”

The Plan provides for a new senior-secured exit financing facility and the issuance of new second lien secured notes in consideration of a capital infusion of up to $40 million to refinance or exchange the existing first lien secured claims and to provide working capital for the reorganized Company. The Plan also deleverages the Company’s balance sheet by exchanging approximately $200 million of the existing second lien notes and third lien notes for new common stock in the reorganized Company and certain new convertible second lien secured notes, together with certain cash distributions. All of the existing equity interests in the Company will be extinguished, but holders of such equity interests will have the opportunity to receive a 20 percent share of new common stock in the reorganized Company, subject to dilution, as part of a settlement encompassed in the Plan. Allowed general unsecured claims and all creditors who are unimpaired under the Plan will receive a complete recovery.

Scheinkman concluded, “We continue to execute on the plan we outlined originally, and we are confident we will emerge stronger by the end of the summer now that the process has moved into the courts. We are pleased to have the overwhelming support of our lien holders, and we believe this is the best path forward for all of our stakeholders. Business continues as usual for customers, employees, and vendors while we work our way through the rest of this process.”

About A. M. Castle & Co. Founded in 1890, A. M. Castle & Co. is a global distributor of specialty metal and supply chain services, principally serving the producer durable equipment, commercial aircraft, heavy equipment, industrial goods, construction equipment, and retail sectors of the global economy. Its customer base includes many Fortune 500 companies as well as thousands of medium and smallersized firms spread across a variety of industries. It specializes in the distribution of alloy and stainless steels; nickel alloys; aluminum and carbon. Together, Castle and its affiliated companies operate out of 21 metals service centers located throughout North America, Europe and Asia. Its common stock is traded on the OTCQB® Venture Market under the ticker symbol “CASL”


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